Network marketing, or “MLM”, is one of the main ways to have your own business and to earn income either a bit of extra cash or enough to fire your boss.
Many people want to start their own business and having heard of network marketing they dive in without really knowing what they are really getting into. It is probably because of this that network marketing has such a poor reputation.
Network marketing is a great business opportunity if you do it right but there some reasons why it might not be the right business opportunity for you.
Firstly, the belief that network marketing is going to generate “easy money” very quickly. Network marketing companies are very good at promoting their business and making it seem that the opportunity is simple and easy to do. It is similar to claiming that boiling an egg is 5* cooking. They hype that many companies put out can lead many people to join when they shouldnít.
You should not assume that this means you cannot make it in network marketing. In fact, most people who join for the right reasons can make it a successful business.
It is important to remember there are no get rich schemes that actually work.
Secondly, is expecting that “spill over” will do all the work. By ìspill overî I mean that whoever sponsors you into the network marketing business will have people they recruit added to your downline and thus building your business for you.
Many network marketing companies work on a matrix structure.
For example, in a 3×9 matrix, when you have sponsored your three first new members, the fourth will be placed under the first person you sponsored. This person has thus gained one person in his new business without having to do any work.
Some of the network marketing companies try to make you believe that this spill over will build your business for you. In fact, this simply isnít true. You might get some people put into your downline but there will nowhere near enough to build your business.
Thirdly, many companies tell you that there product is so unique that it will sell itself. In fact you need to remember that this business is about running a business, recruiting others who want to run their own businesses and only after that about the product.
Next, there are large numbers of people who sign up because they are asked to by a family member or a close friend. I am sure it has happened to you that an old friend has called and wants a meeting to talk about something they will only discuss when they meet you. It might generate some new members for your business but probably not that many that will be lasting, successful members.
Fifthly, one of the common ploys network marketing companies use is that some industry ìguruî endorses the opportunity. This, along with the references of the top performers who make a fortune, is used to encourage you to join.
If you are new to network marketing, and maybe to running your own business, then these testimonials about making it big quickly are designed to sign you up and although you may make significant money but it will not come without significant effort and time.
Lastly, is the belief that this business comes for free. By that, I donít mean the costs of joining the network marketing business, but the costs of running the business after you have started it. Now, it is true that you can carry out lots of low cost promotional activities but you cannot do it all for free. At the very least, you will need to devote time and effort to your business and of course that can be equated to money. So, donít think it is for free just like it isnít a get rich quick scheme.
To summarize; network marketing can provide a new method for making money but you must make sure your reasons for starting are not based on these misconceptions.